Gen Xers on Shaky Retirement Ground

Art by John Cuneo

The majority of Generation X believe their retirement savings will cover basic expenses as well as leisure and travel, but the fact of the matter is: 40% have no retirement savings at all, the Insured Retirement Institute (IRI) learned in a survey. This is up from 35% in 2016. In addition, 66% have not tried to calculate how much they will need to save to retire.

The oldest members of Gen X are only 10 years away from turning 65, the institute notes.

“Time is running out for Gen Xers to save for a financially secure retirement,” says IRI President and CEO Cathy Weatherford. “Unfortunately, fewer Gen Xers are saving for retirement or utilizing professional financial advice than in previous years. The top three retirement risks Gen Xers are most concerned about are changes to Social Security, high health care costs and running out of money—and financial advisers are uniquely positioned to help them effectively plan for these concerns.”

Sixty-seven percent of Gen Xers said they are satisfied with their lives from a financial standpoint, up from 64% in 2016. While 60% have money saved for retirement, this is down from 65% in 2016.

Among those who have been squirreling away money, 70% have less than $250,000 saved, down from 80% in 2016. Still, 23% have put away $250,000 or more, up from 12% in 2016.

Sixty percent think the government should make it a legal requirement for employers to offer a 401(k) plan, and 81% would like to be offered the option to take a portion of their savings in monthly guaranteed income.

Sixty percent think they have enough saved for retirement to cover some (36%) or extensive (24%) travel and leisure activities. Asked about their retirement fears, Gen Xers cited changes to Social Security (66%), greater than expected health care expenses (64%) and running out of money (59%) as major concerns.